A Look Into Consumer Cyclical Sector Value Stocks
Portfolio Pulse from Benzinga Insights
Benzinga Insights has identified five value stocks in the consumer cyclical sector based on low P/E ratios, which suggest they may be undervalued. The stocks include Crocs (CROX), Victoria's Secret (VSCO), China Automotive Systems (CAAS), M.D.C. Holdings (MDC), and Lithia Motors (LAD). The article provides recent earnings per share (EPS) data and dividend yield changes for these companies, indicating their financial performance and potential investor returns.
November 28, 2023 | 2:43 pm
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NEGATIVE IMPACT
China Automotive Systems has a very low P/E of 3.54 but experienced a decrease in EPS from $0.35 to $0.31, which may raise concerns among investors.
The significant drop in EPS could overshadow the attractiveness of the low P/E ratio, potentially leading to a negative short-term impact on the stock price.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 80
NEGATIVE IMPACT
Victoria's Secret has a P/E of 9.07 and a slight decrease in EPS from $0.28 to $0.24, which may be a concern for short-term growth expectations.
The EPS decrease could negatively impact investor sentiment in the short term, despite the stock being identified as a value stock based on its P/E ratio.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 80
NEUTRAL IMPACT
Crocs has a low P/E of 8.86 but reported a decrease in EPS from $3.59 to $3.25. Despite this, the low P/E may attract value investors.
The decrease in EPS might concern some investors, but the low P/E ratio could counterbalance this effect in the short term as it may attract value investors.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Lithia Motors has a P/E of 7.06 with a decrease in EPS from $10.91 to $9.25, but an increased dividend yield, which may balance investor sentiment.
While the EPS decrease could be a negative factor, the improved dividend yield and low P/E ratio might mitigate the impact on the stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
M.D.C. Holdings, with a P/E of 9.11, reported an increase in EPS from $1.24 to $1.4 and a dividend yield increase, which may appeal to investors.
The increase in both EPS and dividend yield is a positive signal that could lead to a short-term appreciation in stock price, especially for a stock considered to be a value investment.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90